A high-profile Italian insurance company, Guardian, has been forced to cancel coverage of its insurance business in the United States amid the US election result.
The company, which was founded in the 1980s by former US servicemen, will be closed as of January 6.
Guardian’s chief executive Michael Smith said the loss was a result of a combination of “a strong U.S. dollar and uncertainty surrounding the election results”.
“We are confident that the US dollar will remain stable and that we will be able to cover all our costs in the U.K.,” he told a news conference on Tuesday.
“In the meantime, we have to consider the cost and logistics of covering the U of A’s campus in Washington DC, which will cost more than €1 million per year.”
The decision follows a warning from the UAW, the union for US military personnel, that the coverage would be lost.
“The US election results have impacted many American businesses, particularly in the insurance industry, including Guardian,” the union said in a statement.
“We will continue to advocate for an insurance-insurance system that protects workers in the face of uncertainty and unpredictability in the economy.
We look forward to working with Guardian in the coming weeks to address the uncertainty and uncertainty caused by this election.”
In a statement, a Guardian spokesperson said the decision was taken following a meeting with US Vice President Mike Pence, which included a discussion about “the US election and the potential impacts for our business”.
“Our decision reflects our understanding that the United Kingdom’s insurance market is one of the most competitive in the world,” the spokesperson said.
“We remain confident in our ability to deliver a level of coverage that meets the needs of our global customers.”
The company said it was considering a number of options, including filing for bankruptcy, restructuring or merging with another insurance company.